Mo State Life & Health Insruance Exam Study Guide

"Which settlement option leaves the principle amount for the death alone?" {Ans: - Interest option}Fair Credit Reporting Act {Ans: - Consumer-reporting agencies must follow in order to ensure that records are properly used - Protects consumers - Insurance rated by states - "At the time of application" - If willingly violates Act penalty up to $2,500}Noncancellable {Ans: - Cannot raise premium for the class - Unless reaches a certain age like 65}Insurance contracts are {Ans: - Aleatory - exchange of unequal amounts of values}Policy summary {Ans: - Written statement describing the features and elements of the policy being issued - Includes premium, cash value, dividend, surrender value and death benefits for specific policy years}USA patriot act {Ans: - Fight and prevent terrorist activities - 9/11 initiated it - Patriot act must be more than $10,000}"A 30 year old wants to buy a policy that pays at 100 but stops paying by 65" {Ans: - 30 pay-life}Business disability buyout policy {Ans: - A buy-sell agreement prepared by an attorney - How the business will pass between owners when one of the owners dies or becomes completely disabled - Large lum-sum payment - Business